The Impact Of Financial Flexibility On Enterprise Value Under The Background Of Refocusing Strategy

The petrochemical industry,as one of China’s six major high-energy-consuming industries,is facing unprecedented challenges under the control of pollution reduction and carbon reduction.More and more countries are developing green industries and restricting the petrochemical industry for their own sustainable development,which directly threatens the future market of the petrochemical industry.At the same time,the uncertainty and risks of the petrochemical industry are increasing due to factors such as the world’s political and economic turmoil.This requires petrochemical enterprises to deeply analyze,actively transform,and upgrade development,constantly enhance their ability for integrated innovation,and adopt scientific financial flexibility strategies to ensure their development.Only in this way can the strategic goal of high-quality,high-efficiency,and safe and stable development of enterprises be achieved.This article aims to explore how enterprises can achieve strategic transformation goals and enhance enterprise value through financial flexibility strategies in the context of refocusing by conducting in-depth analysis of the typical enterprise Donghua Energy in the petrochemical industry.The research significance of this article is to provide a reference basis for the rational formulation of financial flexibility strategies for petrochemical enterprises and other state-owned large and medium-sized enterprises in the process of refocusing transformation through a case study of Donghua Energy.At the same time,this study also makes academic contributions to the theoretical and applied research of financial flexibility.Firstly,this article studies the relevant situation of Donghua Energy’s refocusing and financial flexibility strategy.The research found that Donghua Energy started to pay attention to the reserve of financial flexibility before the transformation in order to meet unknown funding needs.During the transformation process,Donghua Energy adopted asset stripping and other methods to ensure the progress of refocusing transformation.Secondly,this article evaluates Donghua Energy’s financial flexibility,and uses the entropy weight-Topsis method to quantitatively analyze the most important factors affecting Donghua Energy’s financial flexibility level,and puts forward corresponding suggestions.Thirdly,this article analyzes the mechanism of the impact of financial flexibility on enterprise value from four perspectives: financing constraints,insufficient investment,R&D expenditure,and employee training investment,and analyzes the impact of financial flexibility on enterprise value from the perspectives of financial value and market value.Finally,based on the financial flexibility strategies adopted by Donghua Energy in the process of refocusing transformation and the research results of the impact of these strategies on enterprise value,this article proposes suggestions on Donghua Energy’s future financial flexibility strategies and enterprise transformation and development.The research conclusions of this article are as follows:(1)Donghua Energy chose refocusing transformation because of the impact of external environmental changes on enterprise development and internal development constraints.(2)Donghua Energy started to pay attention to the reserve of financial flexibility before the refocusing transformation,and further maintained the level of financial flexibility of the enterprise through asset stripping and other forms during the refocusing transformation process.Good financial flexibility strategies effectively guaranteed the road of refocusing transformation of the enterprise.(3)After the implementation of refocusing transformation,financial flexibility played a positive role in enhancing enterprise value,mainly through four paths of influencing financing constraints,alleviating insufficient investment,strengthening R&D expenditure,and enhancing employee training investment.It successfully improved the comprehensive strength and market competitiveness of the enterprise,and promoted the enhancement of enterprise value.